IIC Approves Loan Of Up To US$40,000,000 To Melones Internacional, S.A. De C.V. In Mexico
08/04/2008The proceeds will support the creation of 1,000 new employments in the State of Sinaloa
Washington, D.C. – On August 5, 2008, the Inter-American Investment Corporation (IIC) approved a loan of up to US$40,000,000 to Melones Internacional, S.A. de C.V. (Melones). The operation comprises an A loan of up to US$10,000,000 to be funded by the IIC and a B loan of up to US$30,000,000 to be provided by other financial institutions.
Melones produces and exports premium quality greenhouse products. It is located in Culiacan, state of Sinaloa in Northern Mexico, which makes it a strategic location for the transportation of the company’s products to the United States, their main market. The company’s products include tomatoes, seedless cucumbers, and bell peppers.
Melones is more than a leading company in the industry; it is an active contributor to the social community. It currently has housing for 1,500 seasonal workers and their families, a medical clinic, a school, and a daycare center. It has a social support program for its workers and their families, who mostly come from rural communities. Melones has been recognized by the Secretaría de Desarrollo Social (SEDESOL) and the Government of the State of Sinaloa for its agricultural worker social support program.
The loan proceeds will be used to build an additional 175 hectares of greenhouses, and it is estimated that it will create around 1,000 new jobs.
The IIC will give Melones access to appropriate long-term financing, which is very limited in Mexico for the agricultural sector. Furthermore, the IIC will mobilize three times its contribution with a B loan from other financial institutions.
The Inter-American Investment Corporation is a multilateral financial institution that is a member of the Inter-American Development Bank (IDB) Group. It provides financing (in the form of equity investments, loans, guarantees, and other instruments) and advisory services to private enterprises in Latin America and the Caribbean. In 2007, the IIC reached US$1.2 billion in assets and approved 62 transactions channeling US$470 million to SMEs in the region. The IIC’s mission is to promote the economic development of its regional member countries by encouraging the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size. For more information on the IIC’s activities, please visit www.iic.int.
Contact: David Levy
Telephone: (202) 623-3969